The International Monetary Fund has confirmed that Nigeria has fully repaid the $3.4bn financial support it received under the Rapid Financing Instrument to cushion the economic impacts of the COVID-19 pandemic.
In a statement sent to journalists on Thursday on behalf of Mr Christian Ebeke, the IMF Resident Representative for Nigeria, the Fund said the repayment was completed on April 30, 2025. The loan, disbursed in April 2020, was aimed at helping Nigeria address a sharp fall in oil prices, economic contraction, and fiscal pressures caused by the pandemic.
“As of April 30, 2025, Nigeria has fully repaid the financial support of about $3.4bn it requested and received in April 2020 from the International Monetary Fund under the Rapid Financing Instrument to help alleviate the impact of the COVID-19 pandemic and the sharp fall in oil prices,” the IMF stated.
However, despite the full settlement of the principal, Nigeria will continue to honour additional annual payments related to Special Drawing Rights charges. The Fund noted that the country is expected to make annual payments of about $30m in SDR-related charges over the next few years.
According to the IMF, the charges are tied to the difference between Nigeria’s SDR holdings, which currently stand at SDR 3,164m ($4.3bn), and its cumulative SDR allocation of SDR 4,027m ($5.5bn).
The charges are levied at the SDR interest rate, which is updated weekly, and will continue until Nigeria’s SDR holdings match the cumulative allocation amount.
The statement noted, “Nigeria is expected to honour some additional payments in the form of Special Drawing Rights charges of about $30m annually.
“In line with the IMF’s Articles of Agreements, these charges, levied at the SDR interest rate, which is updated at the beginning of each week, apply to the difference between Nigeria’s SDR holdings (SDR 3,164 million) ($4.3bn) and its cumulative SDR allocation (SDR 4,027 million) ($5.5bn).
“The net payment of the charges stops when Nigeria’s SDR holdings reach the cumulative allocation amount.”
Data obtained from the IMF website shows that Nigeria’s total charge for 2025 is expected to reach SDR 22.35m (approximately $30.24m), with payments scheduled across May, August, and November.
Nigeria’s $3.4bn loan from the IMF was one of the largest disbursements under the Rapid Financing Instrument globally and came with relatively favourable terms compared to traditional IMF programmes.
Earlier reports showed that debt servicing to the IMF surged to $1.63bn in 2024, made up entirely of principal repayments, with no interest or charges recorded for that year.
Nigeria’s total external debt servicing for 2024 amounted to $4.66bn, up from $3.5bn in 2023. Multilateral creditors accounted for the bulk of the amount at $2.62bn, with the IMF responsible for about 35 per cent of the total external debt payments during the period.
The IMF’s confirmation of the loan repayment is regarded as a positive development for Nigeria’s external debt profile, although the continuation of annual charges underscores the country’s ongoing financial obligations to the Fund.
